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Tuesday, July 12, 2016

V-Guard Industries Maintains Uptrend in Run-up to AGM & Q1 Results

V-Guard stock closed today's trade in NSE, down 0.86%, but it remained well above its 30-day and 50-day moving averages, indicating continued bullishness.

The stock is already well above its long-term averages like 150-day and 200-day moving averages.

The uptrend is based on fundamental performance, as after just one flat year in earnings, V-Guard has bounced back significantly, recording nearly 58% growth in the bottomline in FY’16.

A 10:1 stock split has also been recently announced, which will improve liquidity in the counter in the days to come.

V-Guard Industries' Annual General Meeting (AGM) as well as Director
Board Meeting for approving Q1 results are on July 26th, just 9 trading
days from now.

V-Guard has been continually innovating on new products and solutions for
the household and is most bullish about a solar solution for homes in
Uttar Pradesh and eastern states, which don't have electricity from the
grid.

The lull in growth during FY'15 that was due to the unexpected crude price fall has been more than compensated now with a profit growth that is higher than in any of the preceding 5 fiscals.

The market, always ready for such opportunities, quickly took the V-Guard stock up by 45% post the annual numbers.

This response is hardly surprising as except for the slowdown in growth during FY’15, V-Guard always had several metrics going for it.